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Unit normal loss expression - PowerPoint PPT Presentation

Example

Example. A company purchases air filters at a rate of 800 per year $10 to place an order Unit cost is $25 per filter Inventory carry cost is $2/unit per year Shortage cost is $5 Lead time is 2 weeks Assume demand during lead time follows a uniform distribution from 0 to 200 Find (Q,R).

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Unit normal loss expression - PowerPoint PPT Presentation

Example